Volume 20 | Issue 04 | April 2024

BATTERY INDUSTRY
IN BANGLADESH:
POWERING UP
THE NATION ON THE GO
 contents

03 14-18 19-22
Economy at a Glance
Cover Story Expert Opinion on
Battery Industry in Bangladesh: Cover Story
04 Powering Up the Nation on the Go Faraaz A. Rahim
Executive Director, Rahimafrooz
Month in Brief From the smartphones in our
hands to the vehicles moving on Batteries Limited
the streets, anything that requires
an energy carrier on the go is being

05 powered up by batteries. Without

batteries, smartphones would have
been just expensive paperweights,
For the Record clocks would not have been ticking,
starter motors would not have gotten
23-27
the engines in the vehicles started, Exclusive Feature
solar panels would have failed to

06 deliver uninterrupted supply of

electricity in the absence of sunlight,
telecommunications would have
Beyond Banking:

World Economic been significantly disrupted, and A Deep Dive into BaaS
Indicator emergency power backups like Instant
Power Supply (IPS) and Uninterrupted
Power Supply (UPS) would have
never been a possibility. With the
28-30
07 growing adoption of electric vehicles
and renewable energy sources such
as solar, the demand for batteries is
Womentrepreneur
Design & Printing: nymphea l [Link]

Banking Data Corner expected to only go up in the near

Relaxy
future. However, the aforementioned
purposes require different variants of
batteries, including dry-cell batteries,

08-13 lead-acid batteries, lithium batteries,

and so on, which are of different
technologies, and different chemical
31-37
Spotlight on Startup reactions take place inside the
Sigmind batteries to generate electricity. Capital Market Review

All rights reserved. No part of this journal may be reproduced in any form, by print, photoprint, microfilm or any other means without written permission from the publisher.
FROM THE
EDITOR

Battery Industry in Bangladesh: Powering Up the Nation on the Go

The lead-acid battery industry, which has some market players. Just like many other
grown three to four times in the last decade industries dependent on imports of raw
and is valued at BDT 10,000 crore currently, materials, the rising dollar price has affected
serves a wide variety of purposes without the industry adversely. On top of that, the
which portability and mobility would have potential emergence of the local lithium
never been a possibility. Solar panels, easy battery industry may bring additional
bikes, battery-run rickshaws, passenger challenges. However, policymakers should
transports, commercial vehicles, IPS, UPS,
come forward to create a conducive business
and telecommunication towers—all these
environment for this decades-old industry
either run on batteries or require batteries
and regularise the unregulated players to
as power storage. The fact that the lead-
acid battery industry exported around USD minimise the associated environmental and
29 million worth of batteries on average in health risks and boost the country’s tax
the last five fiscal years makes the industry a revenues.
potential contributor to our foreign exchange
earnings as well.

It is not unknown that the industry faces Md. Shah Jalal

controversies due to the unregulated Editor
manufacturing and recycling operations of IDLC Monthly Business Review

INDUSTRY & EQUITY ANALYSIS TEAM

ASIF SAAD BIN SHAMS MD. ARIFUR RAHMAN
Email: shams@[Link] Email: rarifur@[Link]

MD. SHAH JALAL AKHLAQUR RAHMAN SACHEE

Email: mjalal@[Link] Email: akhlaqur@[Link]
 ECONOMY
AT A GLANCE

EXPORT-IMPORT
Growth in Export-Import Trade (Last 5 Years) Export and Import Growth (Last 12 Months)
27%
36.0%
15%
10% 11% 12% 10%
19.7% 34.4% 3% 4%
2%
10.6% -10% -1%
6.7% -17% -6%
15.1% -8%
1.9% -11% -14% -13%
-15%
-22%
-29% -27%
-8.6% -32% -33%

October

November

February

March
April

May

June

July

August

September

December

January
-16.9% -15.8%

FY 19 FY 20 FY 21 FY 22 FY 23
FY23 FY24

Export Import Export (EPB) Growth Import (f.o.b) Growth

REMITTANCE
Remittance Amount (In USD Million and YoY Growth) Monthly Remittances (In USD Million and YoY Growth)
24,794

36% 2,199 1,978 2,101 2,166

21,027 21,611 1,973 1,930 1,990 38.7% 1,997
1,683 1,692 1,599 21.0%
14,979 18,198 19.7% 17.1%
1,344 29.6%
16,420 7.3%
11%
12,769 17% -1.0%
9% 3%
-10.3% -5.9%
-16.2% -12.7%
-21.5%
April

May

June

July

August

September

October

November

December

January

February

March
-15%

-14%
FY23 FY24
FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23
Remittance Amount (In USD Million) Remittance YoY Growth Monthly Remittance (In USD Million) YoY Growth

PRIVATE SECTOR CREDIT GROWTH

Private Sector Credit Growth (Last 5 Years) Private Sector Credit Growth (Last 12 Months)

12.89% 12.0%
11.3% 11.1%
10.6%
10.1% 9.9% 10.1% 10.0%
9.8% 9.8% 9.7% 10.0%
9.83% 10.68% 10.13%
March

April

May

June

July

August

September

October

November

December

January

February

8.37%

FY23 FY24
Dec'19 Dec'20 Dec'21 Dec'22 Dec'23

3 of 37
 MONTH IN BRIEF

As decided at the Ministrial Bangladesh The amount of

experienced a loans disbursed
Conference of the World Trade remittance inflow of through agent
USD 2.16 billion in banking increased by
Organisation on March 01, 2024, February 2024, which approximately 50%
from October 2023
duty-free market access has been is 38.46% higher than
to December 2023,
the same month in
extended for Bangladesh for three 2023. The amount reaching BDT 15,407
is also the highest
crore, compared to
more years after the country’s in the last eight
BDT 10,307 crore
during the same
graduation from the LDC group. months.
period in 2022.

The International As per the data According to provisional

Monetary Fund mission data from the Bangladesh
recommended raising the
of the Bangladesh Bureau of Statistics, point-
tax-free income limit to BDT Bank, the to-point inflation decreased
5 lakhs from the current to 9.67% in February 2024
limit of BDT 3.50 lakhs
outstanding amount compared to 9.86% in
during a session at the of the government’s January 2024. In February
National Board of Revenue’s 2024, food inflation was
head office on March 14,
borrowing from the
9.44%, whereas non-food
2024. commercial banks inflation was 9.33%.
and the central
As per the statement
bank reached BDT In the first
of the central bank’s seven months of
spokesperson on March 402,359 crore as of
FY2023–24, the
12, 2024, Bangladesh February 15, 2024,
National Board of
Bank will take decisions mainly attributable
regarding mergers of
Revenue collected
to increased
the banks based on BDT 197,839 crore
expenditures and a against its target of
performance unless
banks merge voluntarily decline in foreign BDT 215,590 crore
until December 2024. direct investment. during the period.

According to Eurostat data, apparel exports to the The opening of LCs declined
European Union in January 2024 dropped by 33.92% in February 2024 to USD 5.22
to EUR 1.19 billion, compared to EUR 1.80 billion in billion from USD 6.33 billion in
the same month of the previous year. The economic
January 2024, according to data
slowdown resulting from the Russia-Ukraine war is
the reason for the decline. from the Bangladesh Bank.

4 of 37
 For the Record

THE DOLLAR CRISIS IN RECENT TIMES IS A This commitment extends beyond Bangladesh’s
borders, earning us international recognition. We
GLOBAL PROBLEM. BUT THE GOVERNMENT are now home to 54 of the top 100 LEED Green
IS GIVING PRIORITY TO THE ENERGY AND Factories globally, including 9 out of the top 10, and
18 out of the top 20.
POWER SECTORS. SO IT WILL NOT BE A Faruque Hassan, President of Bangladesh Garment
Manufacturers and Exporters Association, on two more
BARRIER. factories in Bangladesh earning LEED certification. (March
Zanendra Nath Sarker, Chairman of Petrobangla, on Bangladesh inviting 06, 2024. The Business Standard.)
for international bidding for oil and gas exploration in the Bay of Bengal.
(March 06, 2024. The Financial Express.)

Our investment in the

When banks are The rate on FDR has

merged, it will be
increased and this is the
main reason behind the
facility has reached
done in a proper and surge in share of FDR in
total deposits. Currently,
around Tk 500 crore as we
transparent process. many banks offer more
imported sophisticated
than 10 per cent as interest
A merger shall ensure
that good banks are
on term deposits and there
are few banks having
machinery from the US,
not weakened and
liquidity shortage offer
even around 12 per cent
Germany, Japan and India
weak banks become on one-year-tenure term
deposits.
to ensure API production
better.
Emranul Huq, CEO and
Managing Director of Dhaka
of global standard.
Md Mezbaul Haque, Executive Bank, on term deposits in
Director of Bangladesh Bank, on banks reaching BDT 7.80 Sheikh Maksudur Rahman, Director of ACME Laboratories,
mergers of banks in the country. trillion in the last quarter of on ACME Laboratories starting production of active
(March 12, 2024. The Business 2023. (March 16, 2024. The pharmaceutical ingredients (APIs) at the API Industrial Park
Standard.) Financial Express.) in Gazaria of Munshiganj. (March 17, 2024. The Daily Star.)

The government is Operational costs Overall exports from

planning to undertake
initiatives to develop
increased by 40 the sector were not
capital market which is percent solely due
also a deliverable under
impressive last fiscal year
to the increase in
the IMF programme.
value of the US dollar but we are assuming
We believe that interest
in capital market and the remaining that there will be an
will increase, once for the price hike of improvement this year as
the macroeconomic
conditions start utilities. western economies have
stabilising. Mohammad Jahangir Alam,

Naser Ezaz Bijoy, Director of

President of Bangladesh Steel started to rebound.
Manufacturers Association, on steel
Central Depository Bangladesh sector’s operational costs jumping Kamruzzaman Kamal, Director of Marketing at Pran-RFL
Limited, on sluggish growth in
BO account opening. (March 15, by 65%. (March 20, 2024. The Daily Group, on competitive prices driving growth in plastic
2024. New Age.) Star.) exports. (March 19, 2024. The Daily Star.)

5 of 37
 WORLD ECONOMIC INDICATOR

Nominal Real GDP

Current Account Interest Rates Currency
GDP:2022 Growth:2022 Inflation Point to
Country Balance: (% of (%), Ten Years Units (Per
(In USD (Yearly % Point (%)
GDP) Treasury Bond USD)
Billion) Change)

Frontier Markets
Sri Lanka 75.30 -8.66 0.90 March-24 -1.94 13.44 300.33
Vietnam 406.45 8.02 3.97 March-24 -0.88 2.87 25,405.00
Kenya 115.99 5.37 5.70 March-24 -4.72 18.24 132.00
Nigeria 477.38 3.25 33.20 March-24 -0.72 19.71 1,151.18
Bangladesh 453.85 6.03 9.33 March-24 -0.70 12.15 110.00

Emerging Markets
Brazil 1,924.13 2.90 3.93 March-24 -2.91 11.79 5.29
Saudi Arabia 1,108.15 8.74 1.60 March-24 13.79 N/A 3.75
India 3,386.40 6.83 4.85 March-24 -2.61 7.19 83.62
Indonesia 1,318.81 5.31 3.05 March-24 1.00 7.06 16,230.00
Malaysia 407.92 8.69 1.80 February-24 2.64 4.01 4.79
Philippines 404.26 7.60 3.70 March-24 -4.41 6.91 57.19
Turkey 905.53 5.57 68.50 March-24 -5.38 27.48 32.54
Thailand 536.16 2.64 -0.47 March-24 -3.26 2.79 36.79
China 18,100.04 2.99 0.10 March-24 2.31 2.27 7.24
Russia 2,215.29 -2.05 7.70 March-24 10.27 14.36 94.15

Developed Markets
France 2,784.02 2.61 2.30 March-24 -1.71 3.00 0.94
Germany 4,075.40 1.78 2.20 March-24 4.20 2.48 0.94
Italy 2,012.01 3.68 1.18 March-24 -0.73 3.88 0.94
Spain 1,400.52 5.48 3.20 March-24 1.06 3.32 0.94
Hong Kong 360.98 -3.51 2.10 February-24 10.73 3.97 7.83
Singapore 466.79 3.65 3.40 February-24 19.33 3.41 1.36
United States 25,464.48 2.07 3.50 March-24 -3.64 4.64 1.00
Denmark 390.68 3.62 0.90 March-24 12.82 2.53 7.01
Netherlands 993.68 4.52 3.10 March-24 5.49 2.74 0.94
Australia 1,701.89 3.66 4.10 December-23 1.20 4.40 1.56
Switzerland 807.23 1.70 1.00 March-24 9.84 0.72 0.91
United Kingdom 3,070.60 4.05 3.20 March-24 -5.55 4.34 0.80

Bangladesh Data: The new GDP size (FY23) is as per the provisional estimate of Bangladesh Bureau of Statistics and real GDP growth (FY23) is as per new
base year. Calculation Method of CA balance (% of GDP) = CA balance of FY23 /Provisional Estimate for GDP of FY23.
Interest rate (%) 10 years TB as per April 2024, Inflation as per March 2024 and Currency Unit (per USD) as per 8th April 2024 are sourced from Bangladesh
Bank.
Nominal GDP: Data of all countries apart from Bangladesh is sourced from IMF estimates of 2023 data (April, 2023 Outlook).
Real GDP Growth and Current Account Balance: Data of all countries apart from Bangladesh is sourced from IMF estimates of April, 2023 data (World
Economic Outlook, April 2023).
Inflation: Data of all countries apart from Bangladesh is sourced from [Link].
Interest Rates 10 Years TB and Currency Unit : Data of all countries apart from Bangladesh is sourced from [Link].

6 of 37
 BANKING
DATA CORNER

Gross Foreign Exchange Reserve as per BPM6 Gross Foreign Exchange Reserve as per BPM6
(In Billion USD and Last 2 Years) (In USD Billion and Last 12 Months Trend)

25.1 26.0
24.0 23.3 24.8
23.4 23.3 4%
33.4 21.1 21.9
20.7 2% 20.1
19.3

24.8
20.1 -16% -17%

-33% -26% -25% -24% -25%

-25% -25%
-31%

October
April

April 8
May

June

July

August

September

November

December

January

February
FY22 FY23 FY24 2023 2024
(April 8) Gross Foreign Exchange Reserve as per BPM6 (In USD Billion) YoY Growth

MFS Total Transaction Value MFS Float Amount

(In BDT Billion and YoY Growth) (In BDT Billion and YoY Growth)

137 23.8%
1,322 1,295 1,301 20.6%
1,250
1,206 1,197 1,245 104 25.9% 106 19.2%
108.76 111.70 116.83
111 112.06
1,085 1,084 1,096 1,084 99 104 107.78 106.21
42% 11.2% 18.1% 18.1%
983
40%
30% 29% 34% 14.1% 12.1%
15.3% 14.4%
30% 30%
22% 25% 24%
16%
10%
-11.2%

Dec-23
Mar-23

Apr-23

Nov-23
May-23

Jun-23

Jul-23

Aug-23

Sep-23

Oct-23
Apr-23

May-23

Jun-23

Jul-23

Aug-23

Sep-23

Oct-23

Nov-23

Dec-23

Jan-24

Feb-24

Jan-24
Mar-23

Feb-24
Total MFS Transaction (In BDT Billion) YoY Growth MFS Float Amount (In BDT Billion) YoY Growth

Total Amount of Internet Banking Transaction Total Amount of Card Transaction

(In BDT Billion and YoY Growth) (In BDT Billion and YoY Growth)

219% 46%
204% 202% 45%
962 474 486 464 457
938 454 454
829 421 431 426
142% 816 184% 410 399
789 196% 377
29%
29%
94%
491 462 521 487
446 500 107% 104% 83% 16%
12% 14% 17%
336 96%
8% 13% 9%
45%
-2%

Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24

Internet Banking Total Transaction (In BDT Billion) YoY Growth Total Amount of Card Transaction (In BDT Billion) YoY Growth

Source: Bangladesh Bank

7 of 37
 SPOTLIGHT ON STARTUP

Sigmind

Md. Abu Anas Ibn Samad

Founder and CEO, Sigmind
Interviewed By
Akhlaqur Rahman Sachee, Team MBR

Sigmind is a pioneering AI-focused startup specialising in advanced computer vision

technologies, founded in 2017 with a mission to revolutionise public safety, traffic management,
and security through innovative solutions. Leveraging deep learning and artificial intelligence,
Sigmind transforms visual data from surveillance cameras into actionable insights, enhancing
the operational efficiency of enterprises and governments. With its flagship products like
TrafficFlow and Watchcam, Sigmind offers a comprehensive suite for real-time traffic and
human analytics, setting new standards in surveillance automation. Team MBR was in a
conversation with the founder and CEO of Sigmind, Mr. Md. Abu Anas Ibn Samad, and had
the opportunity to learn about his inspirations behind forming the startup and his future
aspirations surrounding Sigmind.

Akhlaqur Rahman Sachee: Sigmind has barriers to economic growth and societal well-
recently created a buzz on social media with being. These issues are compounded by the rapid
the introduction of TrafficFlow, a solution urbanisation and growth of digital infrastructure,
that employs video analytics for real-time creating a pressing need for innovative solutions.
traffic management. Would you kindly share Dhaka is the slowest city, according to the US-based
with us how you came up with the idea to National Bureau of Economic Research. A study by
form Sigmind? BRTA shows that traffic congestion costs Dhaka
approximately USD 3.2 billion annually in lost
Md. Abu Anas Ibn Samad: The genesis of productivity and fuel waste. The founding team
Sigmind was driven by a vision to harness the members of Sigmind, equipped with backgrounds
transformative power of artificial intelligence and in AI, machine learning, and software engineering,
computer vision to address some of the most recognised the untapped potential of AI-powered
pressing challenges faced by modern societies. computer vision technologies to solve this issue.
Our journey began with a keen observation of the The idea for TrafficFlow, our flagship solution, is
burgeoning challenges in urban management, a direct response to the chaotic traffic conditions
particularly in the context of Bangladesh. Traffic in Dhaka. We envisioned a system that could not
congestion, a lack of efficient public safety only monitor but also analyse and predict traffic
measures, and inadequate security infrastructure patterns, offering actionable insights for traffic
are not just inconveniences but significant management. By employing state-of-the-art

8 of 37
video analytics and deep learning algorithms, monitoring, and attendance monitoring. These
TrafficFlow has been conceptualised as a solution capabilities are vital for securing public spaces,
that could revolutionise traffic management by critical infrastructure, and private properties.
providing real-time data, enhancing decision-
making, and ultimately improving the quality of Retail Analytics: Our technology also finds
urban life. application in the retail sector, where it can
track customer movement, analyse behaviour
The positive reception of TrafficFlow on social patterns, and optimise store layouts to improve
media and beyond is a testament to the relevance the shopping experience and increase sales.
and impact of our solutions. The formation of
Sigmind was underpinned by a commitment to Industrial Automation: We have started to
innovation, excellence, and social impact. As we explore the use of video analytics for industrial
continue to innovate and expand our offerings, automation, including monitoring equipment
the foundational idea of using technology to performance, ensuring safety protocols are
solve real-world problems remains at the heart of followed, and optimizing manufacturing
Sigmind. processes.

Akhlaqur Rahman Sachee: As video analytics We have plans to explore the following areas in
facilitates the study of object attributes, the near future.
movement patterns, behaviours, and so on,
Smart Cities: We intend to deepen our involvement
the scope of applications of this technology
in smart city initiatives by developing solutions
is quite wide. May we know what areas that integrate with various urban systems
Sigmind has already explored and for enhanced city-wide management,
what areas it intends to explore in energy conservation, and sustainable
the near future? urban development.
Md. Abu Anas Ibn Samad: Sigmind Education: Enhancing security on
has harnessed the capabilities of campuses and optimising educational
video analytics to address a broad resources through behaviour analysis
spectrum of applications, focusing and space utilisation are areas we see
on enhancing public safety, optimising significant potential in.
traffic management, and improving
security measures. Our exploration of Agriculture: Leveraging video analytics for
the potential of video analytics has led to the precision agriculture to monitor crop health,
development of innovative solutions that cater detect pest infestations, and automate harvesting
to diverse needs. Below are the areas we have processes is another avenue we’re excited about
explored. exploring.
Traffic Management: With our flagship product, Environmental Monitoring: We are keen
TrafficFlow, we have made significant strides in on developing solutions for environmental
real-time traffic management, offering solutions monitoring, such as tracking wildlife populations,
for vehicle detection, classification, speed detecting forest fires early, and monitoring air
estimation, and congestion analysis to improve and water quality, to contribute to conservation
traffic flow and reduce congestion. efforts.
Public Safety: Our solutions contribute to public In addition to the aforementioned areas, Sigmind
safety by enabling crowd management, detecting
is keenly exploring the integration of large
unauthorised gatherings, and identifying
language models (LLMs) and generative AI into
potential safety hazards in real-time. This is
our video analytics solutions. This innovative
crucial for event management, urban planning,
approach aims to enhance predictive video
and emergency response coordination.
analytics and forecasting capabilities, offering
Security and Surveillance: We’ve applied video even more sophisticated insights into security,
analytics to enhance security measures through traffic management, environmental monitoring,
facial recognition, intrusion detection, activity and more.

9 of 37
Akhlaqur Rahman Sachee: Sigmind has traffic management strategies. This consultancy
already provided vehicle analytics and human extends to system design, deployment strategies,
analytics solutions to BEPZA, PMO, CAAB, and optimisation of video analytics operations.
BCB, Finance Division, Robi Axiata, and some Maintenance and Support Services: For ongoing
other local organisations. Would you kindly support and maintenance of our systems, we
share with us the business model of Sigmind offer annual maintenance contracts. These
and how it makes money out of the solutions contracts ensure that clients receive software
it provides? updates, system maintenance, and technical
support, providing a steady revenue stream for
Md. Abu Anas Ibn Samad: Sigmind operates Sigmind. We also offer comprehensive training
under a business model that is designed to programmes for clients’ technical and operational
offer scalable, cutting-edge AI-powered video staff, ensuring they can effectively use and
analytics solutions to a diverse clientele, maintain the video analytics systems.
including government bodies, enterprises, and
private organisations. Our revenue generation Partnerships and Collaborations: Collaborating
strategies are built around providing high-value, with hardware vendors, software developers, and
customisable solutions that cater to the specific service providers expands our market reach and
needs of our clients, ensuring a high level of opens up new revenue streams through joint
satisfaction and return on investment. Here is an ventures and co-marketing efforts. By securing
overview of how Sigmind makes money from its contracts with government agencies and large
solutions. enterprises for city-wide surveillance, traffic
management, and public safety projects, we
Sales of Software Licenses and Hardware ensure long-term engagements that contribute
Systems: We sell licenses for our proprietary significantly to our revenue.
video analytics software, including TrafficFlow
and other human and vehicle analytics solutions. Akhlaqur Rahman Sachee: Solutions that
These licenses can be offered on a perpetual basis employ video analytics can be inappropriately
or through annual renewals, depending on client used, breaching the privacy of others. How
preferences. For clients requiring hardware, we does Sigmind ensure that its solutions are
provide integrated solutions that combine our used for the purposes for which they are
software with specialised hardware, such as GPU- intended to be used?
accelerated servers or embedded systems. This
ensures optimal performance of our analytics Md. Abu Anas Ibn Samad: Sigmind is aware of
solutions. the ethical considerations and privacy concerns
surrounding the use of video analytics and facial
Service Subscriptions: Sigmind also adopts a recognition technologies. We are committed
software-as-a-service (SaaS) model for clients to ensuring that our solutions are employed
preferring to use our solutions without a significant responsibly and for their intended purposes,
upfront investment in hardware and software which are to enhance public safety, streamline
licenses. This model provides access to our video traffic management, and bolster security
analytics platform for a recurring subscription measures without infringing on individual privacy
fee, making it flexible and scalable for various rights. To this end, we have implemented several
business sizes. Leveraging cloud computing, we key measures.
also offer cloud-based video analytics services
that allow clients to analyse video data without Privacy by Design: Our systems are developed with
maintaining their own computing infrastructure. privacy as a core principle. We employ techniques
such as data anonymization and encryption
Custom Solutions and Consultancy: We engage to protect individuals’ identities. Our solutions
in custom solution development for clients with process visual data in a way that emphasises the
unique requirements. This includes tailoring our privacy of individuals, ensuring that personal data
existing software, developing new algorithms, or is not unnecessarily exposed or stored.
integrating our solutions with existing systems.
Alongside, Sigmind provides consultancy services Compliance with Regulations: Sigmind strictly
in AI and computer vision, helping clients design adheres to local and international data protection
and implement effective surveillance, security, and regulations, including GDPR in applicable regions.

10 of 37
We work closely with legal experts to ensure ensuring minimal disruption while maximising
our products comply with all relevant laws and the utility of existing infrastructure. We start
guidelines, particularly those governing privacy by understanding the specific requirements,
and data protection. challenges, and objectives of the client. This
involves assessing the client’s current surveillance
Ethical Guidelines: We have established ethical and security setup and identifying areas where
guidelines for the deployment of our technologies. our video analytics solutions can add value. A
These guidelines mandate that our solutions are technical assessment of the existing surveillance
used in a manner that respects human rights and infrastructure is conducted to determine
privacy. We conduct thorough ethical reviews of compatibility with our solutions. This includes
potential deployments, rejecting applications evaluating the specifications of existing cameras,
that pose a significant risk of misuse or harm. network capabilities, and hardware to ensure our
software can be integrated effectively. It is to be
Client Education: Sigmind actively educates
noted that Sigmind’s solutions are designed to be
clients on the responsible use of video analytics
highly compatible with a wide range of IP cameras
technology. We provide guidance on best practices
and surveillance systems. Our software can often
for protecting privacy, including recommended
be integrated with existing setups without the
operational protocols that minimise the risk of
need for extensive hardware upgrades, leveraging
privacy violations.
the current investment to its fullest potential.
Transparency and Accountability: We advocate For scenarios where the existing infrastructure
for transparency in the use of video analytics cannot support advanced analytics or where
and facial recognition technologies. Our policies enhanced capabilities are desired, Sigmind
and practices are openly communicated to offers customised hardware solutions. These
stakeholders, and we hold ourselves accountable include GPU-accelerated embedded systems and
for the responsible deployment of our servers that are optimised for high-performance
technologies. computing needs in video analytics.

Selective Deployment: Sigmind is selective about Our technical team oversees the integration of
the projects and clients we work with, choosing Sigmind’s software with the client’s surveillance
partners who share our commitment to ethical system, ensuring seamless operation. If new
practices and who intend to use our solutions hardware is required, we assist in its installation
for public good, such as enhancing safety and and configuration to work in tandem with existing
security in a non-invasive, privacy-respecting setups. The system undergoes rigorous testing
manner. and calibration to ensure accurate analytics,
optimal performance, and reliability. This phase
Through these measures, Sigmind aims to lead includes tuning the algorithms to the specific use-
by example in the responsible development and case scenarios of the client, such as specific traffic
application of AI-powered video analytics, ensuring patterns or security monitoring needs.
that our innovative technologies contribute
positively to society without compromising the Sigmind provides comprehensive training to the
client’s staff, covering system operation, data
privacy and rights of individuals.
interpretation, and maintenance procedures. This
Akhlaqur Rahman Sachee: Would you kindly ensures that the client can effectively utilise the
share with us the deployment procedure for system from day one. We also offer ongoing
technical support and system updates to ensure
the video analytics solution that Sigmind
the analytics solutions continue to perform
provides? Would the existing surveillance optimally and evolve with the client’s needs. This
setups of the users be sufficient to integrate includes software updates for improved features
Sigmind’s solutions, or would the users need and capabilities.
to replace the existing setups and purchase
customised hardware from Sigmind? Our solutions are designed with scalability in mind,
allowing for easy expansion or upgrades as the
Md. Abu Anas Ibn Samad: Sigmind’s client’s requirements grow or change. This includes
deployment procedure for our video analytics adding more camera inputs, enhancing analytics
solutions is designed to be seamless and efficient, capabilities, or integrating new AI models.

11 of 37
Akhlaqur Rahman Sachee: Video analytics does it provide for small-scale subscribers to
may fail to detect objects with accuracy and accommodate their needs?
generate misleading data. Would you kindly
shed some light on the statistics regarding Md. Abu Anas Ibn Samad: Sigmind is dedicated
to democratizing access to advanced AI-powered
the accuracy of TrafficFlow, which is currently
surveillance and security solutions, not only for
trending? government bodies and large corporations but
Md. Abu Anas Ibn Samad: TrafficFlow, Sigmind’s also for small businesses and private property
flagship video analytics solution designed for traffic owners. Recognising the unique challenges and
management and vehicle analytics, represents budget constraints that smaller entities might
the forefront of our AI-driven technology suite. face, Sigmind has tailored offerings designed
The effectiveness and reliability of TrafficFlow to bring the benefits of cutting-edge computer
are grounded in its sophisticated algorithmic vision technologies within their reach. Our
foundation and extensive validation across approach ensures that smaller entities can benefit
diverse real-world scenarios. TrafficFlow achieves from high-quality surveillance without the need
a high degree of accuracy in vehicle detection and for extensive infrastructure or significant upfront
classification, distinguishing between 25 distinct investment.
vehicle categories specific to the Bangladeshi Our pricing strategies are designed to accommodate
context. The system consistently demonstrates varying levels of usage, ensuring that small
over 98% accuracy in vehicle detection and businesses and private properties can select a
classification under varied lighting and weather plan that best suits their security needs without
conditions. The licence plate recognition feature overspending. We offer subscription-based
of TrafficFlow, crucial for vehicle identification services that allow smaller entities to access our
and tracking, shows an accuracy rate of over 99% surveillance and security solutions without a hefty
in broad daylight, while it falls to nearly 95% in initial investment. These subscriptions can include
low-light conditions. This is particularly notable regular updates and maintenance, ensuring that
given the challenges of diverse plate designs, clients always have access to the latest features
varying conditions of visibility, angles of capture, and improvements. In addition to that, our
and lighting conditions. With our innovative solutions are modular, allowing clients to choose
recurrence sorting method, we are able to achieve and pay for only the features they need. Whether
state-of-the-art licence plate recognition from it is basic surveillance, vehicle analytics, or facial
a broader camera perspective. For measuring recognition capabilities, clients can tailor their
vehicle speed and direction, TrafficFlow employs package to match their requirements and budget.
optical flow-based algorithms, providing To help small businesses and private property
accurate estimations that are critical for traffic owners understand the value of our solutions,
management applications. The system achieves we offer trial periods and demonstrations. This
an accuracy rate of approximately 91% in speed allows potential clients to experience firsthand
estimation and direction detection. the benefits of our technology before making a
However, Sigmind is committed to continuous commitment.
research and development to further enhance All our clients, regardless of size, receive
the accuracy and performance of TrafficFlow. Our comprehensive support to ensure the smooth
AI models are regularly updated with new data, operation of their surveillance systems. This
improving their ability to adapt to changing includes technical support, software updates, and
conditions and new challenges. training on system usage and maintenance. We
provide custom training sessions tailored to the
Akhlaqur Rahman Sachee: Sigmind has specific operational needs of small businesses
provided its solutions to some government and private properties, ensuring that staff can
bodies and some local corporations so effectively manage and utilise the surveillance
far. May we know if Sigmind is interested system.
in providing its surveillance and security
solutions for small businesses and private Akhlaqur Rahman Sachee: The solutions
properties? If positive, what pricing plan Sigmind provides are less likely to face
geographical barriers, or the solutions may

12 of 37
be useful in other geographical boundaries the Netherlands, Japan, India, and others.
with slight tweaking. Would you kindly share This expansion is a testament to the universal
with us if Sigmind has explored cross-border applicability and high demand for advanced AI-
business opportunities? powered video analytics technologies across
various sectors worldwide.
Md. Abu Anas Ibn Samad: Sigmind recognises
the universal applicability and potential of its We have initiated pilot projects in selected
AI-powered surveillance and security solutions countries to demonstrate the adaptability and
to transcend geographical boundaries. The core effectiveness of our solutions in diverse settings.
technology behind our offerings, grounded These pilots serve as a foundation for establishing
in advanced computer vision and artificial partnerships with local entities and understanding
intelligence, is highly adaptable and can address
the operational nuances in different geographical
similar challenges faced by entities worldwide.
contexts. An essential part of our cross-
Given the global nature of security and
surveillance needs, our solutions are designed to border strategy is ensuring that our solutions
be customised to various environments and legal comply with international data protection and
frameworks, making cross-border applications privacy standards, such as GDPR in Europe. This
not only feasible but highly promising. commitment to compliance facilitates smoother
entry into international markets by aligning with
Sigmind has conducted comprehensive market local regulations. Recognising the importance of
assessments to understand the specific needs,
local context, from traffic patterns to architectural
challenges, and regulatory landscapes of potential
international markets. In addition to its impactful differences in surveillance environments, our team
presence within Bangladesh, Sigmind has works closely with local partners to customise
broadened its horizons by exporting its cutting- our solutions. This includes adjusting models by
edge software solutions to several countries fine-tuning them to local demographics, vehicle
around the globe, including the United Kingdom, types, and even specific security threats.

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 BATTERY INDUSTRY IN
BANGLADESH
POWERING UP THE NATION ON
THE GO
Written By
Akhlaqur Rahman Sachee
 COVER STORY

From the smartphones in our hands to the vehicles concerns produce specialized batteries for vehicles
moving on the streets, anything that requires and industrial applications. Alongside, there are
an energy carrier on the go is being powered more than 25 local manufacturers in Bangladesh
up by batteries. Without batteries, smartphones producing batteries for solar panel systems,
would have been just expensive paperweights, easy bikes, battery-run rickshaws, passenger
clocks would not have been ticking, starter transports, commercial vehicles, IPS systems, UPS
motors would not have gotten the engines in the systems, telecommunication towers, and so on.
vehicles started, solar panels would have failed to Navana Battery, Hamko Battery, Panna Battery,
deliver uninterrupted supply of electricity in the General Battery, Rimso Battery, Rangs, etc. are
absence of sunlight, telecommunications would some of the prominent names in the lead-acid
have been significantly disrupted, and emergency battery manufacturing industry in Bangladesh.
power backups like Instant Power Supply (IPS) The industry has employed more than 1 lakh
and Uninterrupted Power Supply (UPS) would people, directly or indirectly.
have never been a possibility. With the growing
adoption of electric vehicles and renewable energy The lead-acid battery industry in Bangladesh
sources such as solar, the demand for batteries is expected to experience a Compound Annual
is expected to only go up in the near future. Growth Rate (CAGR) of more than 3% during the
However, the aforementioned purposes require forecast period of 2022 to 2027, as per a report
different variants of batteries, including dry-cell by Mordor Intelligence. With the decreasing price
batteries, lead-acid batteries, lithium batteries, of lithium batteries and the increasing adoption
and so on, which are of different technologies, of electric vehicles, which primarily use lithium
and different chemical reactions take place inside batteries, the growth of the lead-acid battery
the batteries to generate electricity. Among industry is expected to slow down.
them, lead-acid batteries are used for most of the
In the context of Bangladesh, the major portion
applications in the context of Bangladesh.
of the demand for lead-acid batteries comes from
Lead-acid Battery Industry in Bangladesh battery-run three-wheelers, which are known as
easy bikes. Battery-run rickshaws also fall into
The size of the lead-acid battery industry in this category. A report by The Business Standard
Bangladesh is more than BDT 10,000 crore, states that the number of easy bikes on the streets
according to a report published by The Business of Bangladesh has already exceeded 30 lakh.
Standard. The Business Post stated that the As policymakers are planning to regularise this
size of the industry has been multiplied three mode of transport with the introduction of safer
to four times in the last ten years. In terms of designs of vehicles and licencing procedures, the
the number of units, the market players are number of easy bikes and battery-run rickshaws
capable of producing more than 40 lakh units will go up in the future. On top of that, easy
of batteries every year. The pioneer in the local bikes usually require five lead-acid batteries to
lead-acid battery industry is Rahimafrooz Group, run, and these batteries last much less than a
which was incorporated in 1954. The concern first year, generating recurring sales for the lead-acid
produced industrial batteries in 1985. Currently, battery manufacturers. According to an industry
Rahimafrooz Batteries Limited is the largest expert, these three-wheelers currently consume
lead-acid battery manufacturer in the country, nearly 60% of the lead-acid batteries produced in
producing 200 different types of batteries for the country.
diversified applications. Also, there are two more
Passenger cars and commercial cars using
concerns under the umbrella of Rahimafrooz
combustion engines require lead-acid batteries
Group, named Rahimafrooz Globatt Limited
too. These vehicles are generating approximately
and Rahimafrooz Accumulators Limited. These

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20% of the total demand for batteries. On the other Figure 02: Cross-section of a Lead-acid Battery
hand, IPS, UPS, solar panels, telecommunication Protective Positive
casing terminal
towers, etc. account for roughly 15% of the total Negative
terminal
demand. Rest 5% goes to other special purposes.

Cell divider
Figure 01: Applications of Lead-acid Batteries
Positive electrode
(lead dioxide)

Negative electrode
5% (lead)

15% Dilute H2SO4

Source: LibreTexts

60% Approximately 50% of the raw materials required

20% to produce lead-acid batteries are imported from
countries like Malaysia, Singapore, China, South
Korea, Thailand, India, and so on. The rest of the
materials are sourced locally through recycling,
Battery-run Three Wheelers mostly.
Passenger Cars and Commercial Vehicles
IPS, UPS, Solar Panels, and Telecom Towers Others Export Outlook of the Battery Industry

Source: Industry Experts

In the last five fiscal years, around USD 29 million
worth of lead-acid batteries were exported from
the country on average. In terms of Harmonised
Broadly, the lead-acid batteries available in System Codes (HS Codes), 850710 represents lead-
Bangladesh can be categorised into two types: acid accumulators for starting piston engines, and
flooded batteries and sealed batteries. Flooded 850720 represents lead-acid accumulators (excl.
for starting piston engines). Other than lead-
batteries have removable caps that can be
acid batteries, the country also exports parts in
opened to refill distilled water, whereas sealed
small quantities. In FY2022-23, USD 28.50 million
batteries are mostly maintenance-free. On the worth of lead-acid batteries were exported from
other hand, in terms of applications, lead- the country. The major export destinations were
acid batteries can be divided into stationary the United Arab Emirates, Oman, Saudi Arabia,
batteries and mobile batteries. Stationary Kuwait, Nepal, Qatar, Australia, Malaysia, India,
batteries are those used in solar panels, IPS, South Korea, Indonesia, and so on. The majority of
UPS, telecommunication towers, and so on, and the export revenues were earned by Rahimafrooz,
mobile batteries are those used in automotives. which pioneered exporting batteries in 1992.

Figure 03: Exports of Lead-acid Batteries (In USD Million)

How a Lead-acid Battery Works
36.98

From the cross-sectional view of a lead-acid

32.90
29.84

battery, it can be observed that there are two

28.50

electrodes immersed in an electrolyte in a

18.61

protective casing. The positive electrode is made

of lead dioxide, and the negative electrode is
made of lead. Each cell in a lead-acid battery
produces 2 volts, and six cells produce 12 volts
FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
altogether. The electrolyte usually consists of Fiscal Year

35% sulfuric acid and 65% water. Source: Export Promotion Bureau

16 of 37
Recycling and Environmental Hazards constructing a manufacturing plant at Mirsarai,
Chattogram, with an annual capacity of 1 gigawatt
Battery Rescue states that 97% of a lead-acid hour. The project requires an investment of BDT
battery can be recycled if done in a proper 600 crore to be operational, and it has already
manner. Most of the components of lead- availed a syndicated term loan facility of BDT
acid batteries, including lead plates, electrode 332.6 crore, where Eastern Bank PLC. is the lead
separators, protective casings, etc., can be arranger.
recycled. However, the acid must be neutralised
before being released into the environment, The policymakers are planning to popularise
and other wastes must be treated in regulated electric vehicles among the masses, and hybrid
manners with the help of air treatment plants and vehicles are already popular in the country. These
effluent treatment plants. According to a report vehicles use lithium batteries. However, this is a
published by The Business Standard, 30 lakh easy prospective market for the local lithium battery
bikes and battery-run rickshaws on the streets industry. A major existing market, approximately
are generating 1.80 lakh metric tonnes of used 60% of the lead-acid battery market, which
lead-acid batteries every year. The unregulated comprises easy-bikes and battery-run rickshaws,
facilities where lead-acid batteries are dismantled may become exposed to the risk of being
are locally known as ‘Bhatti’. Currently, there are captured by the lithium battery industry, as
800 bhattis in operations without any clearance lithium batteries last longer, weigh less, require
certificate from the Department of Environment less time to recharge, and offer better mileage
(DoE). These bhattis pollute the land, water, and in comparison to lead-acid batteries. However,
air in the process of recycling. The DoE requires lithium batteries have drawbacks too. These
the users of the lead-acid batteries to return those batteries cost more, possess a higher risk of
to the sellers after use. As per the rules, the catching fire, offer less resale value, and require a
manufacturers must collect the used batteries and more expensive recycling process in comparison
recycle those themselves or get those recycled to lead-acid batteries. Also, the installation of
by compliant recyclers. However, there are more lithium batteries and replacing the lead-acid
than 100 brands of lead-acid batteries available batteries will require easy bike and battery-run
on the market that do not have certificates from rickshaw owners to replace the charging systems
Bangladesh Standards and Testing Institution. and may require changes to the vehicle designs.
Manufacturers of these brands rely on these
bhattis for recycled leads. Alongside, 65% of the local demand is being
served by Chinese companies. Allegations
Alongside the environmental impacts, the regarding unregulated operations and tax
adverse impact on the health of the workers of evasions have been heard against some Chinese
these bhattis is alarming. These workers have companies producing lead-acid batteries. As a
been found to have blood lead levels ranging result, regulated local manufacturers struggle to
from 66 to 78 micrograms per deciliter, whereas compete with these Chinese companies in terms
the World Health Organization recommends that of pricing.
lead exposure be terminated once someone
is found to have a lead concentration of more Lastly, the rising dollar price has affected the
than 5 micrograms per deciliter. Such high blood industry adversely. As around 50% of the raw
lead levels among the workers of bhattis will materials required to produce lead-acid batteries
ultimately result in kidney failure. are imported, the costs of manufacturing have
surged. Also, finance costs have risen as opening
Challenges Forward LCs (Letters of Credit) these days requires a 100%
cash margin or more.
The lead-acid battery industry may face
transformations with the introduction of local The local lead-acid battery industry has served the
production of lithium batteries. As a part of this country for decades while earning export revenues
endeavour, Bangladesh Lithium Battery Limited is for the country. If policymakers come up with the

17 of 37
required policy support to create a level playing the unregulated battery manufacturers under
field, the projected transitions in the industry regulations so that environmental and health
will be a win-win scenario for every participant risks can be minimised and the government can
in the battery industry as a whole. Moreover, earn tax revenues from these manufacturers.
the government should come forward to bring

18 of 37
 EXPERT OPINION ON COVER STORY

Faraaz A. Rahim
Executive Director, Rahimafrooz Batteries Limited

Interviewed By
Akhlaqur Rahman Sachee, Team MBR

Mr. Faraaz A. Rahim is the Executive Director at Rahimafrooz Batteries Limited. He has been
with the company’s Storage Power Business since 2010, in various local and international
scopes, currently leading a sales and marketing force of over 100 team members and revenues
exceeding USD 60 million. The company holds the position of market leader in Bangladesh
and has a presence in over 50 international markets. Mr. Rahim has been a key catalyst in the
company’s regrowth since the post-COVID-19 market decline. Prior to joining Rahimafrooz,
he was working with Brummer & Partners Asset Management Company as an Investment
Analyst. Earlier, he was with Twentieth Century Fox London in its Branding and Merchandising
team, and prior to that, at Aramark Food Company USA in its Marketing and Distribution
division. Mr. Rahim completed BSc in Business Administration from Boston University School
of Management in 2008. He is an executive committee member of the Dhaka Chamber of
Commerce & Industry and the Accumulators Battery Manufacturers & Exporters Association of
Bangladesh. He is also the National Member’s Squash Champion for 2023–24 and an active
member of the country’s Gulshan Club and Kurmitola Golf Club. Team MBR was fortunate
enough to have a conversation with Mr. Rahim and receive his take on the battery industry in
Bangladesh.

Akhlaqur Rahman Sachee: The local market because of the ongoing greenback crisis impacting
size of lead-acid batteries is more than BDT imports of vehicles, the policy for motorcycles
12,000 crore, and it has been observed that and three-wheeler CNG autorickshaws reducing
the number of registrations, and the sluggish
the market is growing at a rate of 10% to 15%
economic growth resulting from lower economic
every year. Would you kindly share with us activities, the growth in the battery industry
what drivers are fueling the growth the local did not take place as projected. The only major
lead-acid battery manufacturing industry is growth in this industry arose from the backup
experiencing? battery segment (generator/IPS) in the last two
years, which was also limited due to the dollar
Faraaz A. Rahim: The local market size was crisis. Currently, the market is standing at around
expected to hit BDT 12,000 crore in 2024, as per BDT 10,000 crore. A market growth of 5% to 7% is
a projection that was made in 2020. However, expected in the next few years, assuming a stable

19 of 37
recovery from the existing macro-economic Lithium has positive characteristics such as higher
situation. cycle life (longer life) and high power density
(quick charge and power output capacity). It also
Akhlaqur Rahman Sachee: Lead-acid has a lighter weight, and it is non-spillable. These
batteries have a wide scope of applications, characteristics have made the lithium battery
which include off-grid solar panel systems, evolve as a trending technology, particularly
easy bikes, battery-run rickshaws, passenger because the new generation of electric vehicles
transports, commercial vehicles, IPS systems, would not be possible without lithium batteries.
UPS systems, telecommunication towers, However, the downsides of lithium batteries
and so on. Would you kindly shed some light include the relatively higher costs in comparison
on the areas from which a major portion of to lead-acid batteries, the lack of resale value, the
the total demand is being triggered? risk of catching deadly fires while in operation,
the scarcity of materials used for the production
Faraaz A. Rahim: Among the aforementioned of lithium cells, and the inability to recycle lithium
applications of lead-acid batteries, the major batteries on a large scale. The developed countries
portion of the demand comes from three-wheeler dump used batteries after refurbishing them
electric vehicles, which are known as easy-bikes to underdeveloped countries for applications
in our country. These easy-bikes use batteries demanding lower power performance as their
of different technologies and sizes, consuming recycling policy. Once the lithium batteries sold
around 60% of the total production of batteries. around the world reach their end-of-life cycles,
Battery consumption by passenger cars and they turn into hazardous piles in developing
commercial vehicles together is around 20%. The markets.
backup and stationary segment, which includes
IPS, solar panels, telco, UPS, and other systems While the local production of lithium batteries is
that require power storage, consists of around welcome to bring about positive technological
15% to 18% of the market. Other smaller segments changes in our storage power industry, we must
(motive power, special usage, etc.) roughly cover be careful of the scale at which it will be produced,
around 3% to 5%. the ability of the local workforce to adopt the new
technology, and the size of the segments of the
Akhlaqur Rahman Sachee: As lithium domestic market it will be targeting. Lithium cell
batteries are soon going to be produced in production requires a high level of sophistication
the country, the battery industry is expected and a high production capacity to be viable.
to experience significant transformations. However, for lithium batteries to be accepted
What are your thoughts regarding the for applications where lead-acid batteries are
projected shift in demand for lead-acid used, just replacing the lead-acid batteries or
batteries with the arrival of locally produced conventional batteries will not work, as the
entire eco-system needs to be changed, including
lithium batteries?
chargers and others. If launched successfully,
Faraaz A. Rahim: Lithium batteries come with a major shift is expected to come in storage
both positives and negatives. It is the current applications, which include backup systems,
best technology for power storage (not for starter easy-bikes, motive power, and emerging hybrid
battery applications), but it is not considered to be or electric vehicles. On a commercial aspect, it
a sustainable technology. As a result, aggressive is yet to be understood whether our consumers
research is going on to invent new technologies, are ready to spend more on a higher-technology
and those have been trialled in many countries battery (unless the application demands it),
already. Lithium in the battery world is considered where a more economic battery technology has
a transient technology until a more sustainable been proven to work over decades, having lower
and environmentally friendly technology can be risk and a recyclable value of almost 30% of the
invented for mass production. cost of new ones.

20 of 37
Akhlaqur Rahman Sachee: Production and to more than 25 countries, including multiple
recycling of lead-acid batteries can have countries in the Middle East, Australia,
serious environmental and health impacts Malaysia, India, Korea, and so on. Will you
if not performed in regulated manners. kindly share with us the factors that have
Would you kindly share with us the practices made importing lead-acid batteries from
Rahimafrooz and other prominent players in Bangladesh lucrative for these countries?
the industry follow during the production and
recycling of lead-acid batteries to minimise Faraaz A. Rahim: Unfortunately, in Bangladesh,
more than 95% of these national battery export
the environmental and health impacts?
figures over the last few decades came from
Faraaz A. Rahim: Production and recycling of a single company, which is Rahimafrooz. This
lead acid batteries, if done in the correct manner, shows that it is logistically and policy-wise very
may not lead to any environmental hazards, and difficult and unattractive to export batteries from
it is still the most environmentally sustainable Bangladesh, where most raw materials have to
battery technology with above 97% recyclability. be imported. Other battery-exporting countries
like India, China, Korea, Turkey, and so on have
Rahimafrooz and some other regulated players their own domestic supplies of raw materials,
follow standard procedures to ensure that the port facilities (direct vessels to many ports),
production and recycling of lead are not harmful dangerous goods handling capabilities, free-trade
to the environment. Rahimafrooz operates with or preferential-trade agreements, etc., making
ISO 9000, 14000, 45000, 17025, and 17020 their industries much more robust, competitive,
certifications, including IMDG UN certification for and sustainable. The policies towards exports and
handling dangerous goods. It is part of the culture engineered products are also more rewarding and
and process at Rahimafrooz, where the company beneficial in those countries, allowing for higher
started using IOT devices to measure the water economies of scale and lower break-even points
and air in its factories to continuously monitor for the factories.
and ensure that the parameters are within the
permissible limits. In the initial days, Bangladeshi batteries had to
be sold at heavy discounts for market acceptance.
As of today, there are approximately 6,000 This gradually changed over time, and now
to 7,000 metric tonnes of lead being recycled Bangladesh is considered to be one of the more
locally per month, where only eight players are reliable and high-quality battery manufacturers in
operating in a regulated manner and more than almost all the markets it exports to. This, along
450 players are operating in an unregulated with lower production lead times (due to smaller
manner, particularly in the smelting operations. scales), the relationship built over time, and the
This poses a serious threat to the environment. willingness to customise (which is also costlier
than standard products), allow Bangladeshi
Allowing these unregulated players space in the
batteries to gain share in multiple markets.
market curtails the scope for regulated players to
operate, as they are able to get undue advantages Akhlaqur Rahman Sachee: Around 50% of
from the cost and tax savings that regulated
the raw materials required to produce lead-
players have to incur. Rahimafrooz and other
regulated players, through the Accumulators
acid batteries are imported from Thailand,
Battery Manufacturers & Exporters Association Malaysia, Singapore, South Korea, China,
of Bangladesh, are actively pursuing the India, and other countries. Would you kindly
government to regulate this market for safety explain the impact of the ongoing greenback
and sustainability. crisis on the battery manufacturing industry
and how it is addressing this challenge?
Akhlaqur Rahman Sachee: Bangladesh
exported approximately USD 29 million Faraaz A. Rahim: In the case of exports, the
worth of lead-acid batteries during FY2022-23 earnings from dollar appreciation mostly cover

21 of 37
the dollar required for imports, so the challenge is for Chinese companies primarily because of
mitigated to some extent. However, for domestic unregulated operations, no environmental licence,
battery production, this resulted in a severe loss no labour regulation, no VAT or tax obligation,
in several areas. For instance, in forex, the official no BSTI certification, illegal Chinese workers,
rate is BDT 110.50 per dollar, but the effective LC etc., which allow those companies to gain major
opening rate ranges between BDT 116 and BDT competitive advantages in terms of costs over the
122 per dollar. On the other hand, as imports local manufacturers. The association has raised
have become more expensive, purchasing the this issue many times with various government
raw materials locally has sometimes become authorities, ministries, and the Chinese Embassy,
inevitable. Local materials, particularly lead, but it gets overlooked every time.
since the majority of the market is unregulated,
now cost about 20% to 30% more than imported Policy support is required to create a level-
materials. Also, the working capital requirements playing field. For that, we must ensure that no
have gone up significantly, and finance costs manufacturer can operate their factories without
have moved upward sharply from a 0% to 10% LC association membership or adequate regulatory
opening margin to a 100% to 110% margin. On compliance. In addition to that, standardised
a more severe note, even after arranging USD at certifications need to be introduced for the easy-
high exchange rates, some countries and banks bikes and the batteries while ensuring regular
stopped accepting LCs from a few Bangladeshi BSTI and other magistrate-driven investigations
banks because their previous LC commitments in the market so that it becomes difficult and
were not honoured. troublesome for the dealers and retailers to stock
and display batteries that are supplied from
Akhlaqur Rahman Sachee: Chinese
unregistered or unregulated factories.
companies operating in Bangladesh meet
nearly 65% of the demand for lead-acid Alongside, it has become crucial to reduce
batteries. Would you kindly share with us material import VAT and domestic battery sales
why the local manufacturers are lagging VAT to 5% from 15%. This will bring all the players
behind and what policy support is required under the NBR framework. VAT levels can be
for the local manufacturers to thrive? gradually regularised over a few years. Eventually,
the government’s revenues will increase because
Faraaz A. Rahim: Around 90% of the now it is not able to collect taxes from a major
aforementioned 65% market consists of easy portion of sales from the aforementioned 65%
bikes and e-rickshaws. This has been possible battery market.

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Beyond Banking:
A Deep Dive into BaaS
Written By
Md. Faruk Hasan
 EXCLUSIVE FEATURE

Banking as a Service (BaaS) has the potential to The Mechanism of Banking as a Service
completely overhaul the way financial services
are provided in Bangladesh, where traditional To comprehend the mechanics of BaaS, it is
essential to dissect the roles of the key players
banking has struggled to serve the massive
involved.
unbanked population. Only 52.81% of adults
in Bangladesh had access to formal financial i. The Bank: Traditional banks, along with
services in 2021, according to the World Bank’s newer digital banking players, serve
Global Findex Database, highlighting the urgent as the foundational pillars of BaaS.
need for innovative solutions to drive financial These institutions provide the necessary
inclusion. infrastructure, including banking licences
and core banking systems, which form
In the fast-paced realm of finance, the backbone of the BaaS ecosystem. By
technological advancements have sparked a exposing their core banking functionalities
revolution, reshaping how we interact with through APIs, banks enable non-bank
money and banking services. Among the entities to leverage their infrastructure and
myriad innovations, BaaS stands out as a offer financial services to their customers.
transformative concept that is redefining the
ii. BaaS Platform: Acting as intermediaries,
traditional banking landscape. BaaS platforms facilitate seamless
communication between traditional banks
Understanding Banking as a Service
and non-bank entities. These platforms,
often referred to as middleware, ensure
Banking as a Service, often abbreviated as BaaS,
secure data transmission and compliance
is a concept that has gained significant traction in
with regulatory standards. By offering API-
recent years, propelled by the rapid digitisation
based solutions, BaaS platforms empower
of financial services and the growing demand businesses to integrate banking services
for seamless, user-centric banking experiences. into their applications and products
At its core, BaaS represents a paradigm shift in without the need for complex infrastructure
the way financial services are delivered, enabling development.
non-bank entities, such as FinTech companies
and non-FinTech businesses, to offer core ii. FinTech and Non-FinTech Businesses: At the
banking services to their customers without the forefront of the BaaS revolution are FinTech
companies and non-FinTech businesses that
need for a banking license.
interact directly with end customers. By
The fundamental premise of BaaS lies in the leveraging BaaS platforms, these entities
can offer a wide array of financial services,
integration of non-bank entities with traditional
ranging from digital payments and lending
banking infrastructure through Application
to wealth management, without being
Programming Interfaces (APIs). These APIs
burdened by the regulatory complexities
serve as the conduit through which businesses of traditional banking. Through seamless
can access essential banking functions, such integration with BaaS platforms, businesses
as account management, payment processing, can enhance their product offerings and
and lending services, seamlessly embedding deliver tailored financial solutions to their
them into their own product offerings. customers.

24 of 37
Figure 01: The Mechanism of Banking as a Service

Banks exposes BaaS platforms allow Businesses provide

core banking business to embed superior customer
system via financial services in service with innovative
API ecosystem financial products

Bank BaaS
BaaS Businesses End
platforms Platform (Fintech / Customer
pays to get
access to Non-Fintech)
core banking
system

Source: Cashfree Payment

BaaS’s main objective is to make it possible (MFS) industry reveal that the number of
for companies to provide banking services to registered MFS accounts stood at a staggering
their clients without needing to get their own 219.12 million as of January 2024, with bKash,
banking licenses. Utilizing the infrastructure
the pioneering mobile financial services
and regulatory adherence of well-established
provider, accounting for the majority market
financial institutions frees up businesses to
concentrate on providing cutting-edge financial share. This widespread adoption of mobile
services and solutions that are customized for financial services underscores the readiness of
their target markets. BaaS offers a special chance the Bangladeshi population to embrace digital
to close the gap between the underserved and banking solutions, paving the way for BaaS
the banking industry in this era of digitalization. to thrive. Moreover, the burgeoning FinTech
BaaS extends the reach of financial services to ecosystem in Bangladesh is a testament to
even the most remote areas of the nation by
the growing demand for innovative financial
empowering non-banking entities, like FinTech
services. As per a report published in The
companies and even retailers, to seamlessly
integrate banking services into their platforms Business Standard, there are at least 198
and products by leveraging the power of FinTech startups. BaaS presents these FinTech
technology and partnerships. companies with opportunities to leverage the
infrastructure and regulatory compliance of
Adoption of BaaS in Bangladesh
established banks, enabling them to introduce
The potential impact of BaaS in Bangladesh is cutting-edge financial products and services
substantial. Statistics by the central bank of tailored to the unique needs of the Bangladeshi
Bangladesh on the mobile financial services market.

25 of 37
Figure 02: Trend in the Number of MFS Accounts (Last 12 Months)

220.46
220.09

219.12
217.71
215.04
212.42
Number of MFS Accounts (In Million)

209.57
207.27
203.97
200.69
198.09
196.76

February March April May June July August September October November December January
2023 2023 2023 2023 2023 2023 2023 2023 2023 2023 2023 2024

Source: Bangladesh Bank

Bangladesh’s entry into the digital lending era The City Bank’s credit policy. With just a few
is exemplified by the collaborative efforts of taps, eligible customers can quickly obtain a
The City Bank, a prominent private commercial nano loan from The City Bank, with amounts
bank, and bKash. After a year of testing under ranging from BDT 500 to BDT 20,000. Customers
Bangladesh Bank’s supervision, the ‘digital can apply for this loan without having to visit
nano loan’ was commercially introduced on the office, sign any paperwork, or even have a
bKash’s platform in 2021. Since then, users of nominee or guarantor.
the bKash app have obtained nano loans from
The City Bank totaling BDT 7 billion. Adoption of BaaS among the Regional Peers

According to Prothom Alo, 245,000 bKash Bangladesh’s neighbouring country, India, has
customers have availed this collateral-free been at the forefront of BaaS adoption, with
nano loan 0.70 million times. Many of several notable examples. According to Stellar
these customers have taken this hassle- Market Research, the Indian BaaS market
free, instant, and affordable loan multiple was valued at USD 12.67 billion in 2023, and
times. By guaranteeing credit availability, the the total BaaS revenue is expected to grow at
primary goal of this digital loan program is to 13.20% from 2024 to 2030, reaching nearly USD
expedite the financial inclusion of the nation’s 30.19 billion.
impoverished populace, particularly women
and those residing in rural areas. About 24% of In 2013, BaaS was introduced by Yes Bank and
these clients are female as of 2023, while 55% RBL Bank, which made multiple APIs available.
of all borrowers reside in rural areas. Customers Afterwards, a number of banks debuted their API
of bKash who have completed their e-KYC via developer portals and hubs, including Barclays,
the bKash app are deemed qualified for this J.P. Morgan, Wells Fargo, and Citi. All of the
loan from The City Bank, in accordance with country’s main private banks, including HDFC,
directives from the central bank. An automated ICICI, and Kotak, currently offer APIs, while a
credit assessment system determines the number of BaaS FinTech startups, including Zeta,
customers’ loan eligibility and amount based Setu, and Yap, are expanding quickly thanks
on their transactions in their bKash account and to increasing funding. As major banks started

26 of 37
to make their APIs available, a new group of Unlocking the Full Potential of BaaS in
challengers and neobanks emerged, focusing Bangladesh
primarily on digital banking. Paytm and Open
are arguably the most noteworthy success As the nation continues to embrace digitalization
stories in the Indian retail banking sector. and cultivate a conducive environment for fintech
innovation, BaaS is poised to play a pivotal
Perks of BaaS
role in driving financial inclusion, fostering
The BaaS model presents a wealth of benefits entrepreneurship, and accelerating economic
for banks, non-bank businesses, and end- growth. To fully capitalise on the benefits of
customers alike. BaaS, Bangladesh’s financial industry must take
a proactive and collaborative approach. Banks
For Banks: should prioritise the modernization of their
core banking systems, transitioning to a more
• Increased sources of revenue through API-
based transactions and partnerships. modular and API-driven architecture. This will
enable them to seamlessly integrate with BaaS
• Cost savings by leveraging third-party platforms and offer their services to a wider
solutions and expertise. range of businesses and customers.

• Enhanced customer insights and Regulators, too, have a crucial role to play. By
personalisation capabilities. establishing a supportive legislative framework
and nurturing a conducive environment for
For Non-banking Businesses:
FinTech innovation, they can pave the way for
• Ability to bypass complex banking the widespread adoption of BaaS in Bangladesh.
regulations and licence requirements. This includes developing robust digital
infrastructure, incentivizing talent development
• Innovative financial solutions for customers. programmes, and ensuring a streamlined
regulatory environment that encourages
• Increased customer trust and loyalty by
leveraging the brand reputation of banks. collaboration between banks, FinTech firms,
and technology providers.
For End-customers:
A strong digital infrastructure, talent
• Access to a wider range of user-friendly, development programmes, and a legislative
integrated financial services. environment in favour of BaaS would be
necessary for its successful implementation
• Improved customer experience and seamless
in Bangladesh. Working together, regulators,
interactions.
banks, FinTech firms, and technology suppliers
• Greater financial inclusion and access to must play their respective roles to overcome
credit for underserved populations. obstacles and realise the full promise of BaaS.

27 of 37
 WOMENTREPRENEUR

Relaxy

Jahnnobi Rahman
Co-founder and CEO, Relaxy
Interviewed By
Akhlaqur Rahman Sachee, Team MBR

Relaxy provides a platform where everyone can share and talk about their emotions without
any hesitation or fear of being judged. It emphasises the importance of peer support and
has created a supportive community on the Relaxy app where users can connect and discuss
mental health matters with peers in their network. The app also provides users with the
option to connect with licenced mental health professionals for personalised care and
guidance, regardless of time and place. Team MBR was in conversation with the co-founder
and CEO of Relaxy, Ms. Jahnnobi Rahman, and learned about her inspirations to form Relaxy
and her aspirations for the startup.

Akhlaqur Rahman Sachee: As a computer because of the long waiting time for the
science graduate, you are leading Relaxy, appointment, and the last-minute cancellation
a tech startup that aims to address mental made it even worse. This particular event in my
health issues among youth. Would you kindly
life made me realise the void in finding the right
share with us the factors that motivated you
to form the startup and how your academic specialist at the right time. It motivated me to
background helped you integrate technology create a safe space where youths can share their
with the mental health niche? mental struggles anonymously without fear of
being judged. Being a computer science graduate,
Jahnnobi Rahman: Back in 2020, when I was
I was surely privileged to be equipped with the
an undergrad student, I was diagnosed with
depressive and anxiety disorders. To seek expert prior knowledge and skills required to explore the
consultation, I tried to make an appointment with digital space to provide the solution I intended to
a psychologist. However, I faced many difficulties offer to address mental health issues.

28 of 37
Akhlaqur Rahman Sachee: Mental health onboarding psychologists and counsellors so
issues are still one of those topics about that the users receive the best services?
which people of all demographics are less
comfortable speaking up. Would you kindly Jahnnobi Rahman: Relaxy upholds the
shed some light on Relaxy’s efforts to raise quality of its services by employing rigorous
awareness among the masses regarding selection criteria for onboarding psychologists
mental health? and counselors. Supervised by an advisory
team comprising Dr. Ashique Selim, Managing
Jahnnobi Rahman: Relaxy is committed to Director of Psychological Health & Wellness Care,
breaking the barriers youths face to opening up and Tahasin Alam, Chief Technology Officer of
about their mental struggles. We utilise social Belong Health, Relaxy ensures that professionals
media platforms to share informative contents, meet the required qualifications to provide
real-life stories, and practical tips to overcome the expert consultations to the users. This approach
challenges youths face. By leveraging the power guarantees that users receive the best services,
of digital communities, we are providing a safe enhancing their experiences with the app.
space for people to express themselves and seek
support without the fear of judgment. In addition
Akhlaqur Rahman Sachee: It has been
to that, Relaxy facilitates individuals to connect
observed that mental health problems
with mental health professionals and learn
arise from diversified issues such as family
issues, workplace issues, loneliness, stress,
coping mechanisms in a supportive environment.
traumas, and so on. How does Relaxy
Furthermore, Relaxy collaborates with
address the mental health problems
organisations to normalise discussions
of a diversified user base?
regarding emotional well-being and
spreads knowledge and resources to Jahnnobi Rahman: As the user base
promote awareness. of Relaxy is diverse and may have
mental health issues arising from
Akhlaqur Rahman Sachee: Relaxy
unique experiences, the app employs
offers a platform where users can
an early disorder detection tool to
seek support from peer users. May
address this matter. A detection method
we know how Relaxy ensures that all
is used to identify the probable mental
the users on the platform are complying health disorder. Based on the detected probable
with the community standards? mental health disorder, the users are guided to
different services based on their unique needs.
Jahnnobi Rahman: Relaxy allows users to seek
support from peer users while ensuring that the
users on the platform are in compliance with
specific community guidelines. After a user posts Akhlaqur Rahman Sachee: The Relaxy app
anything on the platform using the Relaxy app, has already been downloaded more than
it undergoes scrutiny and requires approval from 50,000 times, and there are more than
the admins. Once it is made sure that the post 15,000 active users. Would you kindly share
complies with the app’s community guidelines, how Relaxy makes money out of the services
it is made public. Relaxy is devoted to providing a it provides to its users and the revenue
space where everyone feels safe and no one feels streams of Relaxy?
uncomfortable because of the actions of others.
Jahnnobi Rahman: Relaxy is currently being
Akhlaqur Rahman Sachee: Users of operated following a freemium model where
the Relaxy app can book sessions with users can access basic features such as chatting
psychologists and counsellors through the with peers, posting on the platform, self-care
app. Would you kindly share with us the contents, etc. for free. However, to avail premium
selection criteria that Relaxy follows while features such as chat sessions with experts,

29 of 37
continuous empathetic support from Relaxy distribution of resources is expected to fuel
Support, meditations, and so on, they need to Relaxy’s growth and expansion endeavors.
subscribe to Relaxy Premium, which starts at BDT
399 only for a period of 15 days. Users can also Akhlaqur Rahman Sachee: You have been
book counselling sessions and chat sessions with named one of the Forbes 30 Under 30 from
psychologists using the Relaxy app. Chat sessions Asia in the Social Impact category, which is
start at BDT 399 only, and counselling sessions surely an international recognition of your
start at BDT 699 only. noble endeavor. Do you have plans to make
Relaxy go global and serve international
Akhlaqur Rahman Sachee: It has been youth communities?
reported on the news that Relaxy received pre-
seed funding from the SAJIDA Foundation in Jahnnobi Rahman: Being honoured with a
2023. May we know how Relaxy is planning position in the Forbes 30 Under 30 from Asia,
to scale up its operation in the future? Relaxy is entitled to more responsibilities to
address mental health issues around the world.
Jahnnobi Rahman: After receiving pre-seed It is committed to making mental health services
funding from the SAJIDA Foundation in 2023, accessible and affordable for everyone. Currently,
Relaxy aims to scale up its operations effectively. Relaxy is focusing on the Bangladeshi market.
It plans to allocate 45% of the funding to tech By 2025, the startup will scale to other Asian
and R&D, 30% to marketing, 15% to operations, markets, including Indonesia, Vietnam, Nepal,
and 10% to HR and personnel. This strategic and some other countries.

30 of 37
 PREPARED BY IDLCAML TEAM

CAPITAL MARKET REVIEW

Performance of Equity Markets of Bangladesh and Peer Countries

Bangladesh equity market closed the month of March Among the regional peers, Pakistan, Sri Lanka and
Vietnam reported a positive return of 3.8%, 7.4% and
in negative territory. During the month, the broad index
2.5% respectively. MSCI Frontier Markets Index increased
DSEX, blue chip index DS30 and Shariah index DSES
by 3.8% in March. Over 5-year horizon, Sri Lanka
decreased by -6.8%, -5.0% and -6.9% respectively. (+105.9%) yielded the most encouraging return.

Table 1: Equity market performance of Bangladesh and peer countries

Return*
Index Points,
Indices
March 2024
1M 3M YTD 12M 3Y 5Y

Bangladesh

DSEX 5,829.7 -6.8% -6.7% -6.7% -6.1% 10.4% 6.2%

DS30 2,021.3 -5.0% -3.5% -3.5% -8.5% 1.3% 2.7%

DSES 1,266.3 -6.9% -7.2% -7.2% -6.2% 5.2% -0.7%

Peer Countries

Pakistan (KSE 100) 67,005.1 3.8% 10.7% 7.3% 67.5% 50.3% 73.4%

Sri Lanka (CSE-All Share) 11,444.4 7.4% 7.5% 7.4% 23.0% 60.7% 105.9%

Vietnam (VNI) 1,284.1 2.5% 11.3% 13.6% 20.6% 7.8% 30.9%

MSCI Frontier Markets Index 804.8 3.8% 7.6% 7.6% 14.9% 6.3% 12.1%

*All returns are Holding Period Return Source: [Link], MSCI, DSE

Liquidity Condition in Equity Market of Bangladesh Table 2: Market capitalization and turnover statistics

During March, the total market capitalization Particulars 31-Mar-24 29-Feb-24 % change

Total market capitalization

decreased by -10.2%. The daily average turnover was (USD* mn)
62,119 69,157 -10.2%

Total equity market

USD 53.9 mn in March, down by -52.9% from that 35,264 38,673 -8.8%
capitalization (USD mn)
Total free float market
14,022 15,066 -6.9%
of last month. Turnover velocity which represents capitalization (USD mn)
Daily Avg. Turnover (USD mn) 53.9 114.4 -52.9%
overall liquidity of the market stood at 19.8% in
Turnover Velocity~ 19.8% 37.7% N/A
March, compared to 37.7% of last month. In 2023,
*All USD figures are converted using an exchange rate of 110 as of March 31,
turnover velocity of Bangladesh equity market was 2024 as per Bangladesh Bank website.
~Turnover velocity is calculated by dividing monthly total turnover with
18.1%, in comparison to 30.7% in 2022. month-end market capitalization. The figures are annualized.

31 of 37
Historical Index Points and Market Participation Data Figure 2: Historical market P/E* and it’s median
Since its inception on February 27, 2013, DSEX yielded a
Current Market P/E in Context of History
holding period return of 43.7% till March 2024. During
29.00x
this period, daily average turnover of the market
amounted to BDT 6.8 bn (USD 61.8 mn) (Figure 1). 24.00x
Median P/E, 14.82x

19.00x
Figure 1: DSEX since inception along with market
turnover 14.00x

9.00x
7,500 300
Month End P/E Ratio, 11.67x

6,900 4.00x
250

Jan-01
Jul-01
Jan-02
Jul-02
Jan-03
Jul-03
Jan-04
Jul-04
Jan-05
Jul-05
Jan-06
Jul-06
Dec-06
Jun-07
Dec-07
Jun-08
Dec-08
Jun-09
Dec-09
Jun-10
Dec-10
Jun-11
Dec-11
May-12
Nov-12
May-13
Nov-13
May-14
Nov-14
May-15
Nov-15
May-16
Nov-16
May-17
Nov-17
Apr-18
Oct-18
Apr-19
Oct-19
Apr-20
Oct-20
Apr-21
Oct-21
Apr-22
Oct-22
Apr-23
Oct-23
Mar-24
6,300
200
Month End P/E Ratio Median P/E

Turnover (USD mn)

Index points

5,700
150
5,100
100 *Price Earnings (P/E) Ratio is calculated by dividing total market capitalization of
4,500
all profit making listed companies with their total audited annual earnings.
3,900 50
Source: CEIC, DSE
3,300 0
Jul-14

Jul-17

Jul-20

Jul-23
Jun-13
Jan-13

Jun-16
Jan-16

Jan-19

Jan-22
Apr-15
Oct-13

Apr-18

Apr-21
Sep-15

Oct-16

Oct-19
Feb-20

Oct-22
Feb-23
Dec-14

Nov-17

Aug-18

Nov-20

Aug-21

Nov-23
Mar-14

Mar-17

Mar-24
May-19

May-22

Turnover (USD mn) DSEX Index

Sector Performance

Source: DSE All sectors posted negative return in March 2024.

Food & Allied sector (-18.5%) faced the most price
Market Valuation Level - P/E Ratio:
correction.
The market P/E decreased to 11.67x in March, 2024
compared to 12.98x in February, 2024. It is lower than Cement sector has the highest dividend yield of
the 23 years’ median market P/E of 15.00x (Figure 2). 5.4% among all sectors.

32 of 37
Table 3: Sector performance snapshot
Market Capitalization Return*
Sector (USD mn) P/E** (x) P/BV∧ (x) Dividend
Yield~
Total Free Float 1M 3M YTD 12M 3Y 5Y
Pharmaceuticals &
5,812 3,070 -7.5% -11.4% -11.4% -8.3% 12.0% 34.5% 13.4 2.8 2.6%
Chemicals
Bank 6,146 3,406 -2.6% -1.4% -1.4% 6.2% 25.0% 26.9% 6.3 0.7 4.3%
Telecommunication 4,438 477 -15.4% -16.3% -16.3% -16.3% -23.1% -20.8% 12.7 5.1 4.7%
Engineering 3,444 904 -9.6% -28.2% -28.2% -26.0% -25.5% 5.9% 21.6 1.8 3.3%
Fuel & Power 3,081 935 -6.9% -21.3% -21.3% -18.7% -9.2% -19.7% 9.5 1.1 4.5%
Food & Allied 2,987 968 -18.5% -17.8% -17.8% -16.8% -9.2% 1.9% 14.4 7.4 2.3%
Miscellaneous 2,183 936 -2.5% 3.3% 3.3% 9.3% 36.0% 87.0% 38.1 2.6 1.4%
NBFI 1,140 383 -12.4% -33.3% -33.3% -32.4% -24.4% -31.1% 15.5 1.3 2.1%
Textile 1,283 734 -8.1% -18.0% -18.0% -4.9% 25.9% -13.3% 17.9 0.9 2.2%
Cement 1,070 421 -9.3% -3.9% -3.9% 6.8% 37.1% 20.8% 13.4 3.1 5.4%
Non-Life Insurance 904 511 -10.4% -4.9% -4.9% 9.6% 14.7% 107.7% 17.3 1.9 2.9%
Life Insurance 524 305 -12.1% -23.5% -23.5% -21.4% 1.6% -1.9% 85.3 5.7 2.4%
Tannery 249 123 -4.9% -13.0% -13.0% -11.1% 52.9% 1.2% 24.2 2.5 2.2%
IT 337 208 -6.3% -1.8% -1.8% -12.6% 79.8% 71.4% 23.6 3.0 1.7%
Ceramics 251 109 -7.0% -16.8% -16.8% -16.5% 28.7% -0.5% 37.6 1.8 1.9%
Travel & Leisure 640 272 -4.2% -2.9% -2.9% -45.0% 40.2% 44.1% 23.9 1.4 1.1%
Paper & Printing 310 113 -11.6% -12.0% -12.0% -14.7% 92.5% 38.0% 22.9 2.4 1.0%
Services & Real Estate 219 112 -8.6% -8.4% -8.4% -16.0% 53.8% 50.7% 18.0 1.4 3.7%
Jute 68 35 -3.6% 3.3% 3.3% 33.2% 94.2% -8.4% 28.3 22.0 0.1%
Market 35,264 14,022 -6.8% -6.7% -6.7% -6.1% 10.4% 6.2% 11.8 1.5 3.4%
*All returns are Holding Period Return.
**Price Earnings (P/E) Ratio is calculated by dividing total market capitalization of all profit making listed companies with their annualized earnings.
∧P/BV is calculated by dividing total market capitalization of listed companies with their respective total book values, excluding companies with negative book values.
~Dividend yield is calculated by dividing last year’s declared cash dividend with market capitalization

Cap Class Performance

During the month of March 2024, Micro cap (-9.8%), Large cap (-9.5%), Small cap (-9.2%) and Mid Cap (-8.2%)
ended in negative territory.

Table 4: Performance of different market cap classes

Definition Return*
based on % of total Dividend
Cap Class market P/E (x) P/BV (x) Yield
equity Mcap
capitalization
(USD mn) 1M 3M YTD 12M 3Y 5Y

Large ≥92 76.5% -9.5% -12.9% -12.9% -10.5% 25.6% 26.5% 10.7 1.5 4.0%

Mid 28-91 11.2% -8.2% -19.0% -19.0% -20.2% -45.5% -43.8% 16.2 1.3 2.6%

Small 9-27 8.8% -9.2% -9.7% -9.7% 1.0% 58.5% 50.1% 24.5 1.0 2.5%

Micro <9 3.6% -9.8% -6.2% -6.2% 14.9% -84.1% -83.1% 28.2 0.9 1.9%

Market 100.0% -6.8% -6.7% -6.7% -6.1% 10.4% 6.2% 11.8 1.5 3.4%

*All returns are Holding Period Return

Performance of 20 Largest Listed Companies in Bangladesh

Among the 20 largest listed companies in terms of market capitalization, EBL increased by 6.0% followed by SQURPHARMA (+0.4%).
On the other hand, DUTCHBANGL generated a negative return of -2.1% followed by MARICO (-2.8%), BERGERPBL (-3.9%), POWERGRID
(-5.7%), BRACBANK (-5.9%), ROBI (-8.0%), LHBL (-8.3%), UNILEVERCL (-10.4%), BXPHARMA (-12.5%), WALTONHIL (-12.8%), BEACONPHAR
(-13.1%), UPGDCL (-13.7%), ICB (-14.6%), GP (-17.0%), RENATA (-17.8%), BATBC (-22.2%). All the other stocks of this list remained
unchanged.
Majority of these companies yielded outstanding return over longer time horizon (5 years) such as BEACONPHARMA (+1067.0%),
BEXIMCO (+472.4%), UNILEVERCL (+148.1%), MARICO (+102.2%), and LHBL (+88.2%).
Among the scripts, LHBL, UPGDCL, GP, SQURPHARMA, and WALTONHIL recorded higher dividend yield compared to that of market.

33 of 37
Table 5: Snapshot of 20 largest companies in terms of market capitalization

Market
Capitalization Daily Avg. Return*
(USD mn) P/ BV Dividend
DSE Code Sector Turnover P/E (x)
(X) Yield
(USD mn)
Free
Total 1M 3M YTD 12M 3Y 5Y
Float
Telecommuni-
GP 2,919 292 0.65 -17.0% -17.0% -17.0% -17.0% -19.8% -29.6% 9.7 11.0 5.3%
cation

BATBC Food & Allied 1,982 524 0.87 -22.2% -22.2% -22.2% -22.2% -17.0% -6.1% 12.2 6.6 2.5%

WALTONHIL Engineering 1,790 19 0.08 -12.8% -38.0% -38.0% -36.2% -43.1% N/A 28.9 2.5 4.6%

Pharmaceuti-
SQURPHARMA cals & Chem- 1,754 1,140 0.53 0.4% 3.5% 3.5% 9.0% 25.1% 7.5% 8.6 2.7 4.8%
icals
ROBI Telecommuni-
1,314 131 0.39 -8.0% -8.0% -8.0% -8.0% -36.2% N/A 45.2 2.4 3.6%
cation

BEXIMCO Miscellaneous 921 616 0.03 0.0% 0.0% 0.0% 0.9% 65.3% 472.4% 1,926.7 1.7 0.9%

Pharmaceuti-
RENATA cals & Chem- 809 394 0.22 -17.8% -36.3% -36.3% -36.0% -20.6% -3.1% 23.4 4.5 0.8%
icals

UPGDCL Fuel & Power 764 76 0.02 -13.7% -38.0% -38.0% -35.8% -39.9% -55.4% 9.2 3.2 5.5%

BERGERPBL Miscellaneous 754 38 0.04 -3.9% 0.8% 0.8% 3.1% 5.7% 7.3% 27.2 11.4 2.2%

LHBL Cement 721 259 0.89 -8.3% -1.4% -1.4% 5.4% 50.5% 88.2% 13.3 5.1 7.3%

Pharmaceuti-
MARICO cals & Chem- 700 70 0.05 -2.8% -0.6% -0.6% 2.2% 25.5% 102.2% 16.1 41.8 3.1%
icals

BRACBANK Bank 588 316 0.23 -5.9% 12.3% 12.3% 14.3% 26.2% -16.4% 9.2 1.7 1.7%

ISLAMIBANK Bank 477 306 0.04 0.0% 0.0% 0.0% 2.1% 23.5% 45.6% 9.0 0.9 3.1%

Pharmaceuti-
BXPHARMA cals & Chem- 472 330 0.22 -12.5% -20.4% -20.4% -18.5% -34.7% 62.7% 8.7 1.7 3.0%
icals

ICB NBFI 443 16 0.01 -14.6% -34.3% -34.3% -34.1% -29.9% -38.8% (11.5) 5.1 0.4%

Pharmaceuti-
BEACONPHAR cals & Chem- 431 259 0.57 -13.1% -16.2% -16.2% -20.0% 93.4% 1067.0% 31.6 16.1 0.8%
icals

DUTCHBANGL Bank 379 49 0.02 -2.1% -5.6% -5.6% -1.5% 21.7% 7.5% 7.6 1.6 2.9%

EBL Bank 351 243 0.52 6.0% 8.8% 8.8% 17.5% 45.7% 76.9% 6.3 1.6 3.9%

UNILEVERCL Food & Allied 351 50 0.04 -10.4% -0.8% -0.8% 3.0% 19.2% 148.1% 40.2 34.2 1.5%

POWERGRID Fuel & Power 290 72 0.03 -5.7% -14.7% -14.7% -13.1% 15.5% -9.7% (106.4) 0.6 2.2%

Market 35,264 14,022 53.95 -6.8% -6.7% -6.7% -6.1% 10.4% 6.2% 11.8 1.5 3.4%

*All returns are Holding Period Return.

∧WALTONHIL got listed on Sep 23, 2020. ROBI got listed on Dec 24, 2020.

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Top Performing Mutual Funds
The top ten open end mutual funds are selected based on the latest published fund size. SEML PBSL Fixed Income
Fund, Grameen Bank-Aims First Unit Fund and Sandhani AML SLIC Fixed Income Fund outperformed the market
on the basis of YTD.

Table 6: Top ten open end funds based on Fund Size

NAV Return
Name Asset Management Fund Category Fund Size
Company (USD mn)
YTD 2023 2021-23

Bangladesh Fund ICBAMCL General 160.9 -14.1% 3.9% 8.0%

ICB AMCL Unit Fund ICBAMCL General 80.3 -10.9% 3.7% 8.4%

Grameen Bank-Aims First Unit Fund AIMS General 14.3 0.5% 7.1% N/A

ICB AMCL Second NRB Unit Fund ICBAMCL General 12.6 -19.4% 3.9% 7.2%

SEML PBSL Fixed Income Fund SEML Fixed Income 9.3 1.1% 1.8% N/A

VIPB SEBL 1st Unit Fund VIPB General 9.1 -4.9% 2.8% N/A

Shanta First Income Unit Fund Shanta General 8.5 -11.5% 1.4% 9.1%

MTB Unit Fund Alliance General 8.2 N/A 2.2% 7.8%

Sandhani AML SLIC Fixed Income
Sandhani Fixed Income 7.9 0.4% 6.3% N/A
Fund
First ICB Unit Fund ICBAMCL General 7.7 -18.9% 6.3% 10.1%

Market (Broad Index) Return (%) -6.1% 0.6% 5.0%

*Based on published NAV and DSEX point of April 9, 2024
∧Fund Size based on latest published data

All the top ten closed end mutual funds on the basis of 3 years (2021-2023) outperformed the market during the
same horizon. Among them ICBEPMF1S1 (+13.3%) posted the highest return.

Table 7: Top ten close end funds based on 3Y return (CAGR) performance

NAV Return3
Fund Size Fund Size Price1 NAV1 Price/ Dividend Redemption
DSE Code Year 4
(BDT mn) (USD mn) (BDT) (BDT) NAV Yield2 (%)
YTD 2023 2021-23

ICBEPMF1S1 619.5 5.6 6.1 8.3 73.8% 4.9% -11.9% 4.5% 13.3% 2030

1STPRIMFMF 212.6 1.9 34.6 10.6 325.5% 2.9% -21.8% 3.7% 13.0% 2029

PF1STMF 487.8 4.4 6.8 8.1 83.6% 4.4% -14.7% 6.7% 12.6% 2030

ICBAMCL2ND 449.5 4.1 7.7 9.0 85.7% 3.9% -11.8% 4.4% 12.1% 2029

ICB3RDNRB 793.0 7.2 5.5 7.9 69.4% 5.5% -12.3% 4.2% 12.0% 2030

PRIME1ICBA 842.0 7.7 6.2 8.4 73.6% 4.8% -12.7% 3.0% 11.0% 2030

ICBSONALI1 893.0 8.1 10.4 8.9 116.5% 2.4% -11.8% 5.2% 9.6% 2033

IFILISLMF1 782.0 7.1 5.6 7.8 71.6% 5.4% -16.5% 4.7% 9.4% 2030

CAPMBDBLMF 477.7 4.3 8.3 9.5 87.1% 7.2% -13.2% -4.1% 9.2% 2027

ICBAGRANI1 888.3 8.1 8.5 9.1 93.9% 5.9% -13.6% 4.7% 9.2% 2027

Market -6.1% 0.6% 5.0%

1
Price as on March 31, 2024 and index value as on April 9, 2024.
2
On last cash dividend declared.
3
CAGR computed for 2021-2023, adjusted for dividend. YTD returns of funds debuting within the year represent return generated since debut, hence is not directly comparable with
return of funds that operated throughout the year.
4
In reference to BSEC Press Release বিএসইসি/মুখপাত্র (৩য় খন্ড)/২০১১/২৫ published on Sep 16, 2018, tenure of existing listed closed end mutual funds can be extended by another tenure
equal to maximum 10 years, provided that the full tenure of the subject fund does not exceed 20 years in total. However, the mutual funds those are not willing to extend their
tenure will still have the option to convert or wind up as per rules and regulations.

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Foreign Participation in Equity Market of Bangladesh
In the month of February 2024, Bangladesh equity market has seen a slight increase in foreign investment. As
of February 2024, total foreign ownership stood at 4.1% of the total equity market capitalization, which was only
1.7% in February 2014.
Figure 3: Net foreign portfolio investment and foreign ownership as % of total equity market capitalization

937.0 6.8%
6.6% 6.6%
5.1% 5.4% 5.0%
4.2% 4.1%
457.0 3.7% 3.5%
379.0 365.0

139.0 172.0
1.7%
44.0

-18.0 - 77.0
-158.0
-269.0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Net Portfolio Investment (BoP, USD mn) Foreign ownership as % of total market capitalization~
Source: DSE and Bangladesh Bank
Note:
1. % of foreign ownership of equity market capitalization as of February 2024 and net portfolio investment as of June of the respective years.
2. Net portfolio investment of FY’24 includes Jul-Feb, 2024.

Among all the companies with foreign ownership, BRACBANK had the highest foreign shareholding of 30.8% as
of February 2024, followed by BXPHARMA with 28.5%.

Table 8: Top ten companies with highest foreign shareholding as of February 2024
Ticker Sector Foreign Shareholding*

BRACBANK Bank 30.8%

BXPHARMA Pharmaceuticals & Chemicals 28.5%

NAVANAPHAR Pharmaceuticals & Chemicals 27.7%

OLYMPIC Food & Allied 24.5%

RENATA Pharmaceuticals & Chemicals 22.6%

BSRMLTD Engineering 17.3%

SQURPHARMA Pharmaceuticals & Chemicals 14.0%

ISLAMIBANK Bank 13.2%

DBH NBFI 12.0%

SHEPHERD Textile 9.5%

Source: DSE

Performance of BDT and Currencies of Peer Countries against USD

BDT depreciated by 40.8% against US Dollar while other currencies of neighbor countries like Vietnamese Dong
(VND), Indian Rupee (INR) and Pakistani Rupee (PKR) also lost value against US Dollar by 16.0%, 32.2% and 175.3%
respectively, since December 2014.

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Figure 4: Nine year’s relative performance of BDT and peer currencies
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BDT VND INR PKR
Source: [Link]

Major Commodity Price Movement

Among the major commodities, Crude Oil increased by 3.7% in March, followed by Aluminum (+2.2%). On
the other hand, Wheat witnessed the most correction of -1.3%. Cotton remain unchanged. Over last 5 years,
Wheat price hiked the most by 33.6%.

Table 8: Major Commodity Price Movement

Price Change
Particulars
1M 3M YTD 12M 3Y 5Y

Crude oil (Average) 3.7% 10.3% 10.3% 9.2% 30.9% 31.0%

Wheat (US HRW) -1.3% -5.6% -5.6% -25.7% 0.6% 33.6%

Cotton (A Index) 0.0% 9.6% 9.6% 4.0% 8.5% 18.4%

Aluminum 2.2% 2.0% 2.0% -3.1% 1.6% 19.0%

Source: World Bank Pink Sheet
*Average of Crude oil (Brent), Crude oil (Dubai), Crude oil (WTI)

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